The retail industry plays a major role in supporting the Indian economy. In former 10 years, the need for online platforms would have surged at the speed of the sector, and offline retail would successively see a fall. But the sudden covid-19 has impacted the industry, the industry would have recovered almost from its impact indeed it would be set to attain new heights in the subsequent financial year.
All over the world, the Indian retail industry would count as the 4th largest and it is anticipated that the sector shall attain $2 trillion by 2032 from $690 billion in 2021. By 2030, the e-commerce industry would all alone is anticipated to arrive at $350 billion rising at a CAGR of 23 per cent.
The retail sector in India is mainly unorganized. The percentage of contemporary retail (including e-commerce) is predicted to reach 30–35%, and the share of traditional retail will decline to 65–70%.
In the Union Budget 2023-24, How Does the Government Assist?
Through strategic methods, the government should assist the sector in order to attain potential growth. Union Budget announcement is an opportunity for the Government for developing the environment needed for the retail sector. In Union Budget 2023-24, below are the mentioned ways through which the government could assist the retail sector.
Facilitating GST for Small Businesses or Retail Stores
Various revisions would have been done to the GST framework since its inception in July 2017. But there would be a requirement to ease the GST for small businesses and retail stores. Complying with the GST norms for small retailers has the potential.
The Simplicity of Performing the Businesses
The company attains success in India due to the focus on the simplicity of performing business operations. In the former 10 years, the country would have made massive progress in ease of doing business. It has been quoted from the World bank report that India stood at 63rd position in doing business and enrolled with the improvement from 142nd rank in 2014. It is expected from the government to ease business policies and regulations in the future.
Encourage Innovative and Convenient Digital Payment Methods
Consumers may now make payments more easily thanks to the Unified Payments Interface (UPI) and other digital payment options. In India’s semi-urban and rural shops, UPI alone saw a 650% increase. The same has supported eliminating the burden in the cash-based economy like India and making it simpler for corporations to enhance their operations in the online segment. It is required to assist these upgrades in the technology which makes it simpler to do digital payments. New and easy modes of digital payments must be supported by the government by announcing the focused extent.
Effective Infrastructure and Logistic Assistance
By 2022, the new logistics policy, which was introduced in September, should lower the cost of logistics from its present level of 14% of the Gross Domestic Product (GDP) to less than 10%. This is a positive development. Infrastructure must be continually improved, and logistical assistance for retail and other companies is required. The National Logistics Policy should be expanded upon in the budget in order to transform the Indian industry.
Other Financing Chances with the Lower Interest Rate
From the pandemic, the Indian retail industry is recovering and is important to consider. There would be a requirement to furnish another financing chance with a cheap interest rate. The retail industry will provide the boost at a lower interest rate through the special announcement in the budget to assure easier financing for the businesses.
Some anticipations are being there from the retail industry which could support enhancing the growth. In short, the companies would be anticipating a rise in the expenditure of the customer and successive revision in the businesses through the government in the forthcoming Union Budget.
